Cardano ($ADA ) is navigating a challenging market environment as the price struggles below the crucial $1.00 resistance. Despite recent recovery attempts, $ADA remains under pressure, consolidating within key levels that may define its next move.
Current Market Scenario
$ADA price plunged from $1.0350, breaking below the $0.9550 and $0.9500 support levels.
A sharp drop led to a low of $0.8769 before bulls intervened to drive a recovery.
The price is now trading between $0.9500 and the 100-hour Simple Moving Average (SMA).
Encouragingly, ADA/USD broke above a short-term bearish trend line with resistance at $0.9560 on the hourly chart. However, ADA is still struggling to overcome the immediate resistance at $0.9650.
Key Levels to Watch
1. Support Levels:
Immediate support: $0.9320
Key support: $0.9150
Critical support: $0.9000 and $0.8800
A drop below $0.9150 could lead to further declines, with $0.9000 acting as a significant buffer. Breaching $0.8800 might intensify bearish momentum.
2. Resistance Levels:
Immediate resistance: $0.9550
Key resistance: $0.9750
Psychological barrier: $1.0000
A successful breakout above $1.00 could open doors for a strong rally. Key targets in this scenario include $1.050 and $1.120.
Cardano Prices Attempt Recovery
Cardano has shown resilience, climbing above $0.9150 after testing support near $0.9000. The price reclaimed the 23.6% Fibonacci retracement level from the $1.0354 swing high to the $0.8769 low. However, momentum remains capped below the 100-hour SMA at $0.9650.
A strong move above $0.9750 is necessary to challenge the $1.00 psychological level. If ADA closes above $1.00, a rally toward $1.050 and even $1.120 becomes increasingly likely.
Bearish Outlook
If ADA fails to clear the $0.9550 and $0.9750 resistance levels, the price may face renewed selling pressure. Immediate support lies at $0.9320, with a critical zone at $0.9150. Losing this support could see ADA retesting $0.9000 or even $0.8800.
Technical Indicators
MACD: The hourly MACD for ADA/USD is gaining momentum in the bullish zone.
RSI: The hourly Relative Strength Index (RSI) is hovering above 50, signaling potential for upside momentum.
Conclusion
ADA’s recovery hinges on its ability to reclaim $1.00. Bulls need to push through $0.9550 and $0.9750 to shift market sentiment decisively. Until then, ADA may continue consolidating with potential downside risks if support levels fail. Traders should watch for volume surges near $1.00 to confirm a bullish breakout.
